Gage Cannabis Completes $50M Financing Round, Plans To Go Public Via M&A
Gage Growth Corp. closed a $50 million financing round.
The Detroit-based cannabis company issued 28.57 million subordinate voting shares via a Regulation A offering ahead of a potential initial public offering. Gage Cannabis added more than 1,000 shareholders, including both institutions and investors.
The company also noted that it plans to use the net proceeds to fund its retail expansion, potential purchases, and help the company become one of the biggest players in the Michigan cannabis market.
The company also aims to become a public company via a transaction, and expects to achieve that during the first quarter of 2021.
In addition, Gage Cannabis confirmed it has appointed Richard Mavrinac to its company board of directors.
Prior to joining Gage Cannabis, Mavrinac was a CFO at George Weston Limited and executive vice president of Loblaw Companies Limited. As a member of the board of directors of TerrAscend Corp. (OTCQX:TRSSF), Canopy Rivers (OTC:CNPOF), Mavrinac brings expertise in the cannabis space in addition to the retail.
"We are humbled and excited by the significant interest and investor demand we received for our oversubscribed Reg A financing," Gage president Fabian Monaco said. "Michigan is one of the fastest growing cannabis markets in the United States, and Gage is well positioned with a robust balance sheet to continue to grow our market share as the leading operator with the best brands in the state. This is a great first step in our journey to becoming a publicly-traded company, and we're excited to continue to drive long-term shareholder value."
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